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Saturday, April 13, 2024 | Back issues
Courthouse News Service Courthouse News Service

McKesson Securities Deal|Grows by $9.5 Million

(CN) - An auditor that paid $72.5 million to settle securities claims over the McKesson HBOC health care merger will pay another $9.5 million, a federal judge ruled.

As trustee for the New York State Common Retirement Fund, state comptroller Thomas DiNapoli led a 1999 class action against the San Francisco-based McKesson HBOC.

The class claimed McKesson and HBOC misled investors about their merger, and that they recorded software sales before consumers had actually purchased the products.

Various defendants settled claims for an aggregate amount of more than $1 billion between 2006 and 2008. The claims administrator received more than 40,000 valid claims in the settlements.

As part of those deals, HBOC's outside auditor Arthur Andersen LLP agreed to pay $72.5 million to eligible class members in 2006.

That settlement included the possibility of contingent payment claims, and Andersen agreed to resolve those claims with a $9.5 million payment.

In exchange for the payment, the parties agreed to a full release of contingent payment claims.

U.S. District Judge Ronald Whyte approved the deal preliminarily on Wednesday. Eligible class members will be notified, and a final settlement hearing will be held on Feb. 8, 2013.

The class is represented by Barrack, Rodos & Bacine, and Bernstein Litowitz Berger & Grossmann.

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